Malawi - Fourth National Rural Development Program (NRDP Dedza Hills and Lilongwe Northeast Development Areas) Project

Document of The World Bank FlLE COPY- FOR OFFICIAL USE ONLY Report No. P-3382-MAI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAIL DEVELOPMENT ASSOCIATION ON A PROPOSED CREDIT IN AN AMOUNT EQUIVALENT TO US$10.6 MILLION TO THE REPUBLIC OF MALAWI FOR A PHASE IV OF TH{E NATIONAL RURAL DEVELOPMENT PROGRAM MARCH 17, 1983 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Malawi Kwacha (MK) MK 1.00 = US$0.93 US$1.00 = MK$1.07 SDR 1.00 = US$1.08995 WEIGHTS AND MEASURES 1 hectare = 2.46 acres 1 kilometer = 0.62 miles 1 square kilometer (sq.km) = 0.39 square miles 1 kilogram = 2.2 pounds 1 metric ton = 100 kg = 2204 pounds 1 liter = 1.03 US quarts ABBREVIATIONS ADMARC - Agricultural Development and Marketing Corporation DLVW - Department of Lands, Valuation and Water ERR - Economic Rate of Return LADD - Lilongwe Agricultural Development Area MOA - Ministry of Agriculture NRDP - National Rural Development Program SAP - Structural Adjustment Program FISCAL YEAR April - March 31  FOR OFFICIAL USE ONLY MALAWI PHASE IV OF THE NATIONAL RURAL DEVELOPMENT PROGRAM CREDIT AND PROJECT SUMMARY BORROWER: Republic of Malawi BENEFICIARY: Ministry of Agriculture (MOA) AMOUNT: SDR 9.8 million (US$10.6 million equivalent) TERMS: Standard PROJECT DESCRIPTION: The proposed project, which would constitute the fourth phase of the National Rural Development Program (NRDP), aims to improve the socio-economic status of the smallholder farmers in the project areas by increasing productivity and providing some social services. Project components would include: (a) strengthening and expanding extension, training and research activities; (b) assisting with farm planning and the introduction of conservation measures; (c) improving and extending livestock dipping and slaughter facilities and programs; (d) providing marketing facilities and expanding credit activites; (e) providing potable water supplies; and (f) strengthening project management, monitoring and evaluation capacities. MOA would have overall responsibility for project implementation. About 10,500 farm families would benefit directly from the project. The project is subject to some risk from erosion and overcrowding, particularly in Dedza Hills. However, the project's emphasis on land husbandry/conservation, adaptive research and improved extension efforts should minimize the adverse effects of any such developments. ESTIMATED COST: Local Foreign Total